NRC Group ASA

Welcome to the second quarter presentation for NRC Group. After the presentation, we will host a Q&A session and for those of you who participate online, you can write your questions in the chat. Second quarter has been a good quarter for NRC Group with strong financial and operational performance. We continue to see a high activity level, and we have delivered a strong second quarter result of 65 million. The strong second quarter result confirms the positive trend in the company. Going back to 2020, we had an EBIT in second quarter of 20 million, increasing to 32 million in 2021, and then delivering 60 million last year. which was also a very strong second quarter result. We start to see the results of the actions we have initiated in Sweden for the last six months. We see that the profitability in Norway is continuing to increase, and we have now crossed a 4% EBIT margin measured in the last 12 months in Norway. We continue to see solid profitability in Finland, although somewhat down from last year. With somewhat lower revenues, improved results, our EBIT adjusted margin has increased to 3.6% for the quarter. And when it comes to operating cash flow, we have delivered a really strong operating cash flow from second quarter with 107 million. And quarter two is normally a quarter where we deliver significantly negative cash flow due to the seasonality of our business. We have delivered order intake of 1.6 billion in the quarter, and we have a very strong order backlog of 8 billion. And we see several interesting tenders coming up, giving us good opportunities to grow our order backlog going forward. When it comes to health and safety, we are not satisfied with our results. We delivered zero serious injuries in the quarter and in the first half of 2023, but we have too many injuries in total in the company. And this is driven by two categories of injuries. The first one related to the use of handheld tools and heavy equipment, causing crushing and cutting injuries in hands and legs. We need to be more aware of the use of the right equipment for the right task and do a proper risk assessment before initiating the work. The second category is related to the fact that we walk a lot in rough terrains besides the railways, causing tripping and subsequent injuries connected to knees and ankles. And we need to raise awareness related to both of these categories of injuries in order to improve our results on these KPIs going forward. The positive trend in sickness absence is continuing with a sickness absence of 3.8% for the quarter, well in line and better results than our industry peers. The EU taxonomy highlights NRC Group's unique position when it comes to building sustainable infrastructure by delivering maintenance and construction services for railways. In the first half of the year, more than 90% of our revenues were eligible according to the taxonomy and 68% was aligned according to the taxonomy. And I think you will struggle to find construction companies getting close to us on these KPIs. We believe that tighter regulations from the European Union will further highlight and create a bigger interest both from equity and debt investors when it comes to investing in NRC due to our unique sustainable position. And in the video you will see now, you will get some more insight into how unique NRC Group is when it comes to building sustainable infrastructure.

First, it's great to be here on top of the construction site, but I learned a lot about a lot of the new and emerging technologies.

It's important to show the project as it is, that this is something we are building according to the strategy that NIC is building, sustainable projects. And a project that the Oslo municipality has fronted as a very strong environmental project.